₦airaland Forum

awesomeJ:
That man is the only societal figure I rate in this country.

One man committing N100bn to education every year, that's already more than what almost all state governments commit in therir entire budget. God will continue to spare his life.

Imagine buying fuel at N700.

If we only depended on the political reforms, dollar might have hit N2000 by now with PMS doing 1500.

Please who gets this funds directly, federal ministry of education, his foundation distributes among the 36 states and F.C.T ministries/department of Education or his foundation identifies projects to fund directly at education institutions nation wide. It is better the later is the case because if the former is, not more than 60% of the funds will touch education sector for real.

awesomeJ:
You're right, It was both
My first ever building, yet I chose one so big that the solid decked area is above 350 sq. metres.
I could have started with a bungalow or a 150 sq metre duplex.

This is my first christmas being debt free in 5 years

That means your Detty December needs to be really Detty with a lot of thanksgiving.
Honestly, I don't know how all these hard men enjoy their life with a lot of debt hanging on their neck. I do believe that they no longer have conscience, I don't know when I will be able to grow tough like them walahi.

Agbalowomeri:
Wetin be my work? I dey follow you my Oga at the top

This one you didn't put your usual trade marks which shows you are serious this time, are you going as a fellow invitee or just to hold your oga's briefcase (of course filled with dollars and pounds he will spray Dangote) for him?

awesomeJ:
Those investment books are probably written by authors in markets where fixed income yields are between 1-5%.

If that was the case here, then their advise would have worked.

Fixed income yields determin a whole lot in investment markets. It's also the reason why 20x earnings multiple is an acceptable valuation there. In Nigeria 7x is more like it cos of our yield levels.

Personally, I started my building project in December 2020, cos Emefiele kept fixed income yields below 2%,

It was so bad that if you bought T-bills with N5m, your earnings couldn't even cover the bank charges, we were seeing discounts of 0.xx%. So I couldn't do naira fixed income, then he brought another silly policy of inflow vs cash for dollars where dollars deposited as cash couldn't be transferred to buy dollar funds, I could get 6% from SIAML at the time but no way to transfer to them, since my dollars were sourced as cash and deposited. SIAML too also changed their minimum from $1000 to $20,000 for whatever reasons.

I hate having idle funds, I wasn't this experienced in trading, and[b] I underestimated the cost of building by at least half[/b].

@ the bolded, was it really underestimation or inflation in prices of cost of materials multiplied your estimates, except both contributed anyway.
When I completed my house in December 2019 I bought the last batch of cement @ #2,400 per bag (and I was angry that I was buying at a premium) fast forward to 2023 a bag became #10,000 meaning that it would have cost over extra 150% to complete same size of project just within a space of 3years. Inflation no be anybody's mate for this country just that we are resilient people coupled with the possibility of corruption here and there that almost everybody in the country are benefiting from. Besides, if the kind of inflation that happens in Nigeria happen in all these western countries where black is black and white is white most times honestly many people will commit suicide.

deathwing:
At any point in time, I can quickly withdraw my money and put into another higher yielding investment or stock or crypto while it’s still compounding at 13%. For me, I very much like flexibility with my money. Landed property will be for my own private use, or just to sell off later as a way to holding money (esp as the exchange rate is now stable), but never for have tenants or renters. No, thank you.

If I didn't raise this topic today perhaps I wouldn't have known that informed investors are this averse to real estate (rental income) investment. But all investment books are always talking about cash flow of which rent is among the most strongly recommended?

ojeysky:
100m would have bought 1 million units of each of those stocks kai! Looking for a currently cheap stock that has potential to deliver similar result in next 5 to 10 years. TIP, Chams, Tantalizer, Aradel are on my consideration list

You are tempting me to leave my remaining CHAMS for the next 5-10 years even though I am not convinced that they can do a CWG kind of magic in a short while. Only time will tell sha

crownprince2017:
I believed you will better off betting on Presco or okomu.

It's almost sure that presco will deliver 2m in dividend on that fund for 14 years and 1m for first year assuming you bought this month at 1400, no capital appreciation or re reinvestment of dividend. You will get 29m with your capital intact and this is what I believed is the worst case scenario provided presco did not run into natural disaster or serious insecurity issues.

My guy you too like oyel business.

But I think you are right sha.
Rent will likely not fall, but uncertainties like default may happen at any time.

emmanuelewumi:
Okay. Rent in high at Onipaanu, what you quoted is about the rent for a new or modern apartment

Now you are getting the gist if you know Onipanu well. It is a pure new and modern building. They are just at the last stage of installing fittings.

Streetinvestor2:
Does it mean that the company who is ready to collect 28 million for 15 yrs
Then return the property to the land owners equally in 15 yr.How much was used in construction of such property to warrant such rent.i see the property as lacking standard and should not earn such rent based on current cost of good building materials and finishing
Finishing here is interior and exterior. Walahi u go do maintainace taya.What I am saying is the cost for such 2 flat is cheap and cannot warrant such rent.And if na yeye standard u go do maintenance taya from 3yrs as per person way dey building and construction business

You need to understand the intricacies of lease development business to understand the answers to these questions. They usually need liquidity to develop the next property, so let's assume he spent #100m to develop this one deck of six flats (remember he didn't buy land) he is willing to sale some parts to raise block funds to develop his next property ( I learnt he cleared another plot 2days ago for redevelopment).
Should he rent the whole property out he should raise only approximately #16m but if he sale these two at #28m and rent the remaining 4 flats at #11m he will likely raise more funds to develop his next project instead of borrowing from bank at around 37%.

I believe that's the mathematics behind their decision to accept long term lease instead of collecting just annual rents.

In other words his long term profit is still intact via the remaining 4flats as well as the opportunity to develop more properties.

emmanuelewumi:
Where is the location of the property, this will give me an idea if the rental income of about N4.7 million is feasible

I have answered this before naa.
It is at Onipanu, the printing business area of Somolu.

chimex38:
By his write-up.
Seems he doesn't understand that bonds are locked-in throughout the years at that percentage(say 17%) per annum 🔐.

He think it varies yearly as economy variables varies.

I think it's an enlightenement issue not that he's already fixated.

You understood the matter better than our street brother.
I thought bond rates varies like interest rate.

awesomeJ:
The beauty of bonds is that once you lock in, the coupon rates are fixed.


I think there's a June 2038 bond with a 15.4% coupon.

If you're able to buy it at par or a little premium (maybe N1020 per unit), you have the 15.4% locked in, even if yields later crash to 5%.

You get N4.3m tax free if I'm not mistaken.

Whereas your N4.7m rental income would be liable to 15-23% tax meaning you might get below N4m. When you discount maintenance, rent loss to vacancy, tenant default, it might be below N3.5m or below N3m in some cases.


Plus like others have said, you're not getting the N28m back after 15 years.

From experience, rental yields are super low, what makes it better is the capital appreciation if you own the building.

This is very elaborate. Learnt a lot here.
Thanks so much.
Besides I sent you a mail, kindly respond.

emmanuelewumi:
Okay.

When I read it, I thought it was a purchase.

Will he pay the N28 million upfront or he will pay per annum at about N1.7 million

I am to pay the #28,000m to the developer within one year and have the property for only 15years.

unite4real:
i think u should clarify with oga Emma that the N28 million is not sale amount but you are leasing it with that amount. the house will not be yours. so there is no capital appreciation here since you cannot be looking at the future value of the house.
in essence you are leasing it for N28 million, then give it out on rent for 15 years and hand over. I guess that during this period, you will be responsible for all renovations. also there is not guarantee that you will receive your rents promptly.

To have peace of mind, just go and buy FGN bond at 17% and you have guarantee return(like rent) of N4.7 Million annually and you have your N28 million back at maturity. remember on your lease model, the N28 million will not return back to you.

Thanks for your contribution.
But we all are expecting FGN bond rates to fall as soon as possible as inflation eases out which means i can on enjoy this for perhaps just one more year. Or do you visualize a possibility of stable bond rate @17% going forward?

awesomeJ:
He's not being sold the property, just a long term lease.

You are right.
Oga Emma I believe you have captured the whole scenario properly. Now kindly re-evaluate the offer.

Please note that I appreciate every contribution on this topic so far

https://punchng.com/fg-inaugurates-panel-for-capital-gains-tax-rollout/

I hope these ones will seek input from industry experts and investors.

Raider76:
Dangote offers dollar dividends to lure investors to refinery IPO

https://businessday.ng/news/article/dangote-offers-dollar-dividends-to-lure-investors-to-refinery-ipo/

Good news for investors but may likely turn a bad news to the Nigerian economy because Dangote may insist on selling refined products on dollars to the local market which means farewell to exchange rate stability at the long run.
it is hard to earn naira ( from the major market) and pay dividends in dollar.

emmanuelewumi:
Where is the location of this property in Lagos Mainland.


This is about 16% rental yield on the property which is more than the average yield of 6% to 7% in the property market

Somolu to be precise.
I had a one on one test of the prevailing rent cost in the location while discussing with the agent. The client he arrived with from inspection while I was waiting for him had 1.5m to rent 1 bedroom flat but they haven't been able to find yet. All available ones are going for 2m according to him. 3 bed according to other agents within the location is going for between 4.5m-6m per annum.

You are wrong on the demolition part. This is a redeveloped property by a lease developer, in fact he is redeveloping to transfer to the land owner after 15 years. They are yet to even complete electrical fittings but wiring, pop, tiling and every other thing are in place.

Note also that there are a total of 6 flats on the property and I am only getting 2.

My fellow investors please help me to evaluate this investment decisions:

I have an offer to undertake a long term lease for a property containing one unit each of 1bedroom flat and 2bedroom flat for 15 years at 28,000,000.
From my investigations I can rent the 1 bedroom currently at between 1,700,000-2,000,000 while the 2bedroom can go between 3,000,000-3,500,000 per anum. The building is just newly completed and at a very good site in Lagos mainland.

Now here is my question:
Investing such amount on this real estate offer and investing same amount on good dividend paying stocks like GT, NAHCO, PRESCO or Okomu which is a better decision at the moment considering preservation of my capital, better ROI and consistent cash flow within the next 15 years?

Please your candid opinion is required.

Testimonies777:
Ordinary "T" or with Power? Please confirm make we do our DD

and the 3 states...?

You likely see serious activity in these three states where XXXXXX has its heaviest footprint or new opportunities:

Rivers State: This is the big one for Q4. In November 2025, the Federal Government (NCP) finalized the regularization of the XXXXXXXX sale to "T". This secures a massive asset for them in Rivers.

Delta State: Home to the XXXXXXX," T" cash cow. The new reforms allow them to optimize this XXXX and sell XXXX more flexibly within the region.

Lagos State: Lagos has been the most aggressive in domesticating theXXXXXXXX (establishing its own XXXXX market)." T" is a key supplier that will benefit from selling into this high-demand, paying market.

He was talking about Tantalizer

I didn't receive MTN Nigeria's dividend. Since I returned to NGX this year every company I qualified for their dividend has paid into the account number I provided to my stockbrokers without my having to fill any additional e-dividend form. What might be wrong with Coronation registrars, I thought investors here rate them highly?
Please who knows their email address so that I can contact them to release my patience benefits?

Oga Agba see your fellow billionaire friend.
He is a billionaire only in NSEMPA thread but scared of 'ordinary' #500m in real life.

Please go through the attached pix and know that SpaceX is not a bad boy

PETERiCHY:
After a DEAD CAT BOUNCE, Next is
GOOD BYE JANET


BARGAIN HUNTERS TAKE NOTE!

My first time of seeing Agba and Peter on same band wagon. I thought they used to be water and oil that can never mix. Oga na we ask you to sell-off?

awesomeJ:
I didn't get this quickly. I was like abi it's ARADEL he's saying??

abi sboga has influenced his writing??.

But I later reckoned Aradite is like a glue.

So Akagum yeah.

Of course. Why pay N20m to the government in a year for them to loot. When I can either give N10m to 2 people each and likely change their lives or commit to supporting people with their bills 100k at a time, i'd be able to give 200 such supports in a year.


And in a few more years, I will even be thinking of N200m in potential taxes not N20m, imagine how many people I can impact per year. Cos government won't help them as much.

You gerrit bro, if don't gerrit forget it mehn!

Well, you are very right, trust is an issue here. Why give my money to an institution that I know will not manage it properly but loot it rather.
It was only when Wike met his march that he started saying 'this country belongs to all of us' did he forget that when he was demanding for a whopping #25b monthly from the resources of over 10m people?
Disclaimer: I read this information from a newspaper o!

On a more serious note our government needs to show working with the resources from Natural sources, VAT, CIT and several other sources available to them currently before seeking to increase tax base at least that's what obtains in the developed world. That way citizens confidence will be boosted to give more to the government while expecting better life. Doing such with the existing profligate status quo is as good as an armed robber demanding for more money from his victim.

awesomeJ:
Taxing 1% on sales could be taxing investor's capital which is worse.
They already take 0.3% through the SEC, taking it to 1.3% is like a 333% hike, worse than the 200% hike on CGT, and it won't be avoidable like CGT is.

This investors una hand na Aradite o!
Una no dey give shi shi like Obidients, Lol!

mikeapollo:
They should suspend the CGT as well.
This govt should invite very good technocrats that can give them good advice on how to run the economy.
Their main focus seems to be on using every means to imposes taxies, levies to generate revenue and it is creating big problems!

The bolded is not possible in a nepotistic government.
Just ask your self this question 'is it possible to assemble the most qualified technocrats that will properly manage the Nigerian economy while focusing on just one tribe'?
Minister of Finance
CBN governor
Tax Committee chairman
FIRS Director.
How did we get here? and for those celebrating nonsense because 'it is their turn' where are we going from here? What happens after? (8 years). Cycle of trial and error with any serving president's tribes men continues till when?

Mpeace:
Yesterday, almost 13billion(12.9billion) entered Aradel, hmmm these people no want make we buy this stock low.
I missed the chance to top up at below 700. Had to buy high at 710 yesterday. Make Una bring this stock down small naa.

This is very easy naa, just search for Oyedele's number and ask him to change his mouth again and insist on retrospective implementation of his CGT law from the pit of hell. It's just as simple as that and you can get Aradel at even 450

KarlTom:
No. BE is the price you have to sell to break even (no profit, no loss).

The bolded is the unit cost

In other words BE = unit cost + sales cost right?

[quote author=KarlTom post=137448320]It's all good. I assume this is MC or ATLASS

86.82 is the total purchase cost (unit price + brokerage fees)
88.17 is your break even price.
78.00 is the SP at market open. It will be updated to 85.80

Thanks, but I thought the break even price = price + purchasing costs?

Abeg who can help me to explain this transaction in the pictures below?
Explanation: I placed order for GTCO @ 85.80 and itrader shows it got filled at same price but on my portfolio Morgan is showing that I bought same at 86.82 while my break even price (cost of purchase inclusive) is 88.17.

Please where is the extra #1.22 coming from?